GLOBAL MARKETS: Reflecting Asian bourses’ positive tone, the majority of European equity markets were modestly higher in early trade on Wednesday supported by the strengthening global upswing and receding political risks. Turning to government bond markets, long-dated USTs retained a positive tone helped by persistently subdued inflation pressures and market uncertainty over when or even whether the tax reform bill will be passed into law. In FX markets, the USD’s recent uptrend came to a halt earlier today on market uncertainty over the prospects of the US tax reform and the future composition of the FOMC monetary policy committee. Looking at today’s macro calendar, US weekly MBA mortgage data and French trade data for September are the only releases of note. The RBNZ convenes tonight and is expected to stay on hold, leaving the OCR unchanged at 1.75%.

SOUTH EASTERN EUROPE

CESEE MARKETS: Emerging market assets were mixed earlier on Wednesday. Stock markets and government bonds moved broadly lower, while most currencies steadied after yesterday’s sell off that came on the back of a firmer US dollar.